Global X ETFs has launched its first exchange-traded products (ETPs) to be physically-backed by cryptocurrencies.
The global exchange-traded fund (ETF) firm said that the Global X Bitcoin ETP (BT0X) and the Global X Ethereum ETP (ET0X) will provide clients with a cost-effective way of accessing both Bitcoin and Ethereum.
Head of business development at Global X ETFs, Rob Oliver, explained the advantages of cryptocurrencies and how these new products support this.
He said: “Cryptocurrencies offer a path to invest in the potential of a permission-less, decentralised, and transparent infrastructure. Backed by blockchain technology, cryptocurrencies can scale, revolutionise, and improve traditional sectors within our economic, political, and socio-cultural landscape.”
Oliver added: “Global X has continued to embody its philosophy of striving to offer investors something beyond ordinary, reflected in the firm’s move to launch its first crypto offering in the European market.”
Both products have a respective arranger fee of 0.65% and join a pre-existing range of products, including the Global X Blockchain Ucits EFT. They are listed on Deutsche Börse Xetra.
Coinbase Custody International is operating as the cryptocurrency custodian for both BT0X and ET0X.
Global X has placed both news ETPs in the highest-risk class, classifying them as a “seven out of seven”. Poor and fluctuating market conditions are set to impact the products’ performance and hinder positive investment return, the firm said.
The firm, which is a member of the Mirae Asset Financial Group, has over $620 billion in assets under management globally.
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